valuations of start up

1. Start Up Valuations

2. Startup Valuations Demystified
• Uncover the secrets to estimating your startup's worth

3. Why Valuation Matters
• Secure funding
• Craft fundraising strategy
• Understand investor expectations
• Set realistic milestones

4. 8 Startup Valuation Methods
• No single method is perfect. Combine techniques for a fair
value.
1.Berkus Method: Ideal for pre-revenue startups (assigns value
to 5 key areas)
2.Comparable Transactions: Compare to similar acquired
businesses
3.Scorecard Method: Score your startup based on various
factors
4.Cost-to-Duplicate Approach: Estimate the cost of recreating
your startup

5. 8 Startup Valuation Methods
(continued)
5.Risk Factor Summation: Adjust base valuation based on risks
6.Discounted Cash Flow (DCF): Consider future cash flows and
discount rate
7.Venture Capital Method: Estimate valuation based on
anticipated ROI for VCs
8.Book Value Method: Look at net assets (assets minus
liabilities)
• Slide 5

6. Key Takeaway
• Use a combination of methods for a well-rounded valuation
• Leverage company databases for market benchmarks
• A precise valuation empowers informed decision-making